(CapitalWatch, Aug. 23, New York) Chinese e-commerce giant JD.com posted its slowest growth ever in the second quarter of 2022.
Investors didn't seem deterred by the news, however, as JD (Nasdaq: JD ; HKEX: 9618) shares went up in New York and Hong Kong. The company was likely saved by its above-par performance in other ways.
In New York, JD.com shares are up 3.4% Tuesday afternoon after the report, trading at $57.20. Company shares also rose by around 1.2% in Hong Kong Tuesday, trading at $28.21.
Net revenues for the second quarter of 2022 were around $40 billion, an 5.4% increase from the second quarter of last year. Net service revenues were up 21.9% from the same period of 2021 at $6.2 billion.
Income from operations for the second quarter of 2022 also roughly doubled year over year, and Non-GAAP income from operations also almost tripled compared to last year.
Net income attributable to ordinary shareholders was around $700 million in the second quarter compared to around $117 million for the same period last year. Non-GAAP net income attributable to ordinary shareholders $1.0 billion up from around $673 million in the same period last year.
JD's platform base also grew by 9.2% in the twelve months ended June 30 reaching over 580 million active users.
On a call with analysts, JD.com chief executive Xu Lei called the second quarter of 2022 "the most challenging quarter since we're listed."
The company largely credited the pandemic's resurgence earlier this year for its challenges.
Lockdowns push more people online, but they also cause severe supply chain disruptions, especially Shanghai's monthslong lockdown. The financial hub's closure turned transportation logistics upside down and halted production, so companies struggled to make deliveries.
Despite the damage done by the pandemic, JD.com reported getting some recovery through its sales from China's annual 618 shopping festival. It also started overseas expansion with a warehouse in Los Angeles.
JD was also hit by side effects of China's regulatory crackdown, but it managed to fare better than some of its peers.
Although JD managed to dodge harsh treatment from Beijing, it's still feeling pressure overseas. JD.com was named alongside dozens of other Chinese companies at risk of delisting from Wall Street.
Audit talks have remained stale, but Beijing is slowly shifting its attitudes since the height of its regulatory crackdown last year. Regulators aren't going easy on companies, but officials have recently made positive remarks towards the tech and financial sectors.
With new hope that the government will support companies in the wake of its crackdown, investors' attitudes towards Chinese firms could be shifting.
Despite a difficult year and continued market disruptions, JD has managed to stay afloat and even foster growth in multiple areas.